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Where Did the Current Economic Crisis Come From?

As closely as we've all been following the economic, um, situation, it's complicated enough that just when you think you've got a handle on it, you come up short. That's why I was delighted when Nurse DeAnna sent this video my way explaining the roots of the problem — that stretch all the way back to the Carter administration and the Community Reinvestment Act.

Now don't let the length of the video scare you off, it flies by — and sound not necessary, though the music is pretty good. It's a pretty Spurlocky breakdown of the whole history of the mortgage business complete with facts, figures, and encouragement to Google the details for yourself. The video plants a good deal of the end-blame square in Obama's lap, and since it's a compelling, though a not unpartisan look at the crisis, I'd love to know what you think. Does the video succeed in explaining it? Did you learn stuff — or are you fired up?

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bluesarahlou bluesarahlou 7 years
I never said you couldn't lady, I was just stating my observation. :)
ladydaytrippin ladydaytrippin 7 years
I thought we were free to express whatever we are feeling at the time. Excuse me.
bluesarahlou bluesarahlou 7 years
Whoops. Freakin laptop touchpad.
bluesarahlou bluesarahlou 7 years
Is it just me or does this sort of thing happen like once a week? Someone comes over to Citizen and gets really upset about a post that is opposite to their views :?
bluesarahlou bluesarahlou 7 years
Is it just me or does this sort of thing happen like once a week? Someone comes over to Citizen and gets really upset about a post that is opposite to their views :?
Great-Sommelier Great-Sommelier 7 years
Do you read all the threads? Basically, with any political thread, Liberty's are going to be from a left angle and Citizens from a right. It isn't veiled or even attempted to be veiled.
ladydaytrippin ladydaytrippin 7 years
I'm not talking about the threads. I'm talking about the way some of the information is slanted.
UnDave35 UnDave35 7 years
ladyday?!?! :rotfl:
Great-Sommelier Great-Sommelier 7 years
Wow, you must not read the threads very often.
ladydaytrippin ladydaytrippin 7 years
Citizen Sugar is laughable. Is this supposed to be a site to find information or to enlist more Republicans? I rarely visit this site now. I'm so turned off.
sweetrae80 sweetrae80 7 years
right on bebeshopper!
harmonyfrance harmonyfrance 7 years
Calling people Obamaites or any other derogatory term is certainly not going to make them want to listen to your argument.
dreamsugar dreamsugar 7 years
[I really enjoyed the video, but I'm not surprised a few of the people here are making up reasons to completely ignore it.] A BIG :oy: to this comment and the video.
NurseDeAnna NurseDeAnna 7 years
Lax enforcement? Bush tried to propose a new agency oversee fannie and freddie back in 2003. http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&pagewanted=print "For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems" http://www.whitehouse.gov/news/releases/2008/09/20080919-15.html
mydiadem mydiadem 7 years
Amen JMW! And its also lax enforcement of existing regulations by the Bush Administration. There was a story about this on NPR the other day, the commentator (so therefore its an opinion piece) said that we have good regulations but the Bush administration fails to enforce them.
jmw jmw 7 years
"Footloose" soundtrack notwithstanding, this video has a very narrow, revisionist, misleading take on the crisis -- nothing about Wall Street's role in securitizing mortgages and disturbing the traditional transaction between bank and borrower, nothing about the "shadow economy" of structured investment vehicles and other unregulated financial instruments out there, nothing about the credit default swaps that brought down AIG, etc. etc. *And rather unbelievably, these clips essentially blame low-income families for corporate greed and irresponsibility.* Just ask yourselves these two simple questions: why would any bank deal in subprime mortgages in the first place? Why would any responsible lender agree to loan to "NINJA" (no income, no job, no assets) clients? Many want you to believe it was "pressure from the Clinton Administration." The real answer is crystal clear: because Wall Street fashioned a system to make vast amounts of money on these Americans. And money to be made on top of that money. With limited regulations and oversight.
mydiadem mydiadem 7 years
'It's making you question the policies and economic plans that put us where we are today. It's pushing you to investigate the policies Democrats support.' Policies democrats and republicans support I would like to add. But the point I was trying to make earlier that no one wants to seem to address in this forum is that Wall Street is mostly to blame for this and they are the ones that would get this bailout. Nothing in this plan will fix the root of the issue, it just helps Wall Street. Can't they be held accountable?
hope2be hope2be 7 years
As an undecided and 'independent,' (not registered as one, I'm actually registered Dems). I'd have to side with Bebehopper and those who say that everyone has a hand in this. Not only one side. That's why I'm feeling despondent with the whole thing. And thanks for the statement GS :lol: Politicians are like diapers, aren't they? :lol: Currently watching the vote LIVE now and I'm just shaking my head.
chancleta chancleta 7 years
That's for posting this Citizen. Even if a large percentage of the Obamaites won't give it a chance.
chancleta chancleta 7 years
1. I like this video. I think there's a lot of hard core facts to be seen and it breaks it down in a way that's easy to understand. 2. Like Mich said: it's not blaming Obama. It's making you question the policies and economic plans that put us where we are today. It's pushing you to investigate the policies Democrats support. 3. It's all too easy to blame something on a current president without really doing the research.
BuchaBaby BuchaBaby 7 years
Huuuuu harsh words. As a German i can only say, that it might be a choise between the devil and lucifer (to chose between Obama and McCain), if you know what i mean. I mean Bush sucked, for what we saw over here, but Obama?! Seriously. According to Primeminister Browns (UK) words this is a world economy crisis. I am seriously interested who will win, cause the leadership of such a influencing country is a big influence on all of us.
organicsugr organicsugr 7 years
Sure we can Mich. We can just lower interest rates and inject massive amounts of liquidity into the markets until they turn around. Who cares of our fiat dollar loses all value? Who cares if inflation puts the U.S. on sale? And who cares if the federal government has to heavily tax its constituents to turn around and dole the money back out?
Michelann Michelann 7 years
Hypno, I wouldn't be so sure it won't happen again. Especially if the bailout goes through. People won't learn from their mistakes if they don't have to face the consequences. Not to mention the market is cyclical. You just can't get rid of recessions completely. Trying to skip that part of the cycle is just begging for trouble.
hypnoticmix hypnoticmix 7 years
Well I never baught for a minute that the market collapse was solely Wall Streets to blame. I remember all threw the 90's and into the new century Gov. officials elected and appointed cheer leading the growth but failing to warn us of the dangers. Wall Street does need some strict over sight but not control. There is a difference. I think we're all smart enough to know that there are no clean hands here. Whether you were an ignorant home owner, a greedy corporate rep., a looking the other way or complacent public servant. They all dropped the ball and they all share ownership of the blame. The good news is this isn't going to happen again. Reality bit us in the @$$ and we realize that tempting fate really isn't such a good idea after all.
organicsugr organicsugr 7 years
I don't know why republicans blame regulation for hindering the market's ability to stabilize itself. Obviously federal control is good. It lets our central government get into bed with corporations under the sheet of regulation. That way they can trade political/economic favors, which is what always occurs.
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